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NESTE OILBiofuels as Renewable Energy

Presentation at Green Commerce Class, 12 Feb 2013

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Neste Oil in brief

A refinery and marketing company

concentrating on delivering fuels for cleanertraffic

15 million tons of oil products annually

Turnover of 11.8 billion euro in 2010

5,110 personnel

State of Finland is the controlling owner(50.1% holding)

Neste Oil and biofuels

Worlds largest renewable diesel producer

with 2 million tons capacity

Leader in sustainability of biofuel production Developing 3rd generation biofuel technologies

and new raw material sources

6 consecutive years at Global 100

sustainability ranking list, now at 4th position

(2013)

2007, 2008, 2009, 2010, 2011, 2012

2008/2009, 2009/2010, 2010/2011, 2011/2012

2010, 2011, 2012

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What is required from a good biofuel?

CONSUMER Ease of use, enough availability

High quality fuel = problem-free use

Compatibility to cars

Reasonable fuel price

CAR INDUSTRY Compatibility to engines

SOCIETY Clear green house emission reduction, improvements of air quality

Sustainability over the entire value chain

No additional or low infrastructure costs

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Fuel pathways

Mineral Oil

Refining

Hydrocarbons:

Gasoline

Jet

Diesel

Commercial

Sugars

Fermentation

Bioprocesses

Alcohols:

Ethanol

Butanol

Commercial

Vegetable Oil

Trans-

esterification

Esters

Commercial

Vegetable Oils

HVO (NExBTL)

Hydrocarbons:

paraffins

Commercialby Neste Oil

Biomass

Gasification

Fischer-

Tropsch

Hydrocarbons:

paraffins

Development

GASOLINE

DIESEL

GASOLINE DIESEL DIESEL DIESEL

GASOLINE

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0% 20% 40% 60% 80% 100%

BTL

Cellulocic ethanol

HVO (NexBTL)

FAME (traditional

biodiesel)

Starch ethanol dry

Starch ethanol wet

Sugar ethanol

Raw Material cost Conversion cost Capital cost

Comparison of selected biofuel pathway costs

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GREEN PRODUCT

Neste Oils NExBTL renewable diesel the highest quality diesel in the world

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NExBTL use reduces traffic related emissions

Helps combat climate change

50-80% lower greenhouse gas emissions

compared to fossil diesel

Measured over the products entire life cycle

Helps improve urban air quality Contributes to a significant reduction in pipe

emissions compared to fossil diesel

Nitrogen oxide (NOx) -10%

Particulates (PM) -28%

Carbon monoxide (CO) -28% Hydrocarbons (HC) -50%

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Renewable NExBTL diesel

Product quality that outperforms conventionalbiodiesel (FAME) and fossil diesel

Compatible with fossil diesel drop in solution

Can be used in all modern diesel engines without any

modifications (passenger cars, buses, trucks, etc.)

Meets engine manufacturers toughest quality

specifications Can be used in diesel engines as such (100%) or

blended with fossil diesel (as in Neste Green diesel)

Can be transported and stored like fossil diesel

No Best before date

Compatible with existing logistical and distribution

systems

Commercially available today

Cool-natured characteristics

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NExBTL Jet fuel

Neste Oil is a pioneer in renewable fuel foraviation industry

Compatible with current jet engines

Helps airlines significantly minimize carbon

footprint and GHG emissions

Worlds largest test is undergoing : Lufthansaflies 8 timeseach day between Hamburg and

Frankfurt using Neste Oils bio jet

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GREEN PRODUCTION

Renewable Feedstock (Raw Materials)

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NExBTL renewable fuel is produced from a mix ofvarious vegetable oils and waste animal fats.

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Currently used raw materials

Palm oil, palm stearin,palm fatty acid distillate(PFAD)

Waste animal fat fromthe meat processingindustry

Rapeseed oil

Camelina oil Jatropha oil Soy oil

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Neste Oils criteria for selecting new raw materials

Availability for industrial scale production

Economical perspectives Features of sustainable development

Carbon foot print (greenhouse gas emission balance)

Water foot print

Nutrients

Land use

Certified CPO by RSPO or others

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Reduces emissions

Respects legislation

Respects regulation

Uses land efficiently

Respects human rights

Respects labour rights

Enhances economicaland social improvement

Available

Commercially feasible

The 3Ps

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Thank You!